Stress tests hit Wall St. dividend plans

The U.S. Federal Reserve slashed dividend plans for three major U.S. Wall Street banks, forcing them to scale back investor payouts after an annual check-up. Bobbi Rebell reports.

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New signs the Fed is keeping a tight lid on Wall Street. Three major U.S. banks- Goldman Sachs, Morgan Stanley and JP Morgan Chase, all with large and risky trading operations, have had to scale back their planned investor payouts after an annual check-up by the Federal Reserve. U.S. units of two foreign banks, Deutsche Bank and Santander, had their plans rejected completely after failing the stress test altogether.
Shake Shack stock falling in after hours trading- after reporting a bigger-than-expected loss in its first earnings report as a public company, And another recent IPO- cloud storage provider Box- said its revenue was up 61 percent- thanks to more customers.
Stocks down for a second day in a row- investors' concerned over when the Federal Reserve would hike rates, falling oil prices, and the rising dollar.
U.S. crude oil lost ground for the eighth straight session. Stockpiles of U.S. crude rose last week to a record high. Trader Luke Rahbari of Stutland Volatility says prices won't go much lower over the next six months.
SOUNDBITE: LUKE RAHBARI, PARTNER, STUTLAND VOLATILITY GROUP (ENGLISH) SAYING:
"So I think oil has a good floor around the $40 level but you have to caution that with any geopolitical events, the change in the dollar, and right now, I just don't think we're going to see a crash in oil prices. I can't see why."
Intel Inside: Tech site VentureBeat says the chipmaker will supply Apple with wireless modem chips for the new iPhone next year.
SanDisk shares shot higher. Goldman Sachs raised its price target on the flash drive and memory card maker and added it to its "conviction buy" list.
Shares of Tyson and other poultry producers under pressure- on news of bird flu in Arkansas, where Tyson is based.
And its a good time to work on Wall Street. The average bonus jumped 15 percent last year- to its highest level since the 2008 financial crisis. the average cash bonus: $164,000, according to the New York state comptroller.
Overseas, European shares rebounded from Tuesday's sell-off.

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